TECH SUPPLIER May 2020 - Market Perspective - Doc # CA45063820

Canadian Communications Service Provider Capex Spending, 2019–2020

By: Lawrence SurteesResearch Vice President, Communications

Table of Contents

Executive Snapshot

Figure: Executive Snapshot: Canadian Communications Service Provider Capex Spending, 2019–2020

New Market Developments and Dynamics

Introduction

Overview

Global View

Figure: Global Telecom Service Provider Capital Expenditure, 2006–2019

Canadian Communications SPs Capital Spending in 2019

Figure: Canadian Telecom Service Provider Revenue Versus Capex (Excluding Cable Companies) Spending, 2008–2019

Figure: Canadian Telecom Services Capital Expenditure, 2006–2019

Table: Canadian Communications Service Providers Top 6 Capex Budget Variances by Company, January to December 2019 (C$M)

Figure: Canadian Telecom Provider Capex Budget Changes, 2019

Figure: Canadian ILEC Capital Intensity Ratios, 2019

Figure: Canadian Communications Service Provider Revenue and Capital Expenditure, 2008–2019

Top Investment Priorities

Industry Dynamics

Accelerated Capital Cost Tax Allowance

Assessment of Future Directions: Network Capex Drivers

Figure: The 3rd Platform Era of ICT That Enables Digital Transformation

Figure: Enabling Technologies of Industry 4.0

Communications SP Network Transformations Loom

The Need for Bandwidth and the Optical Imperative

Global IP Traffic Growth

Figure: Global IP Traffic by Device Type, 2018–2023

IP VPN and Metro Ethernet

Table: Canadian Metro Ethernet Equipment Vendors, 2019

From 100G to 400G Optical Backbones

MAREA 160G Transatlantic Cable

Table: Canadian Optical Network Providers' Equipment Vendors, 2019
Table: Major Canadian Fibre-Optic Network Route Length, 2019

Fibre-to-the-Home Programs Accelerate

Figure: Comparison of Telecom and Cable Broadband Technologies

North Fibre Loop to Be Completed

Undersea Fibre Links Proposed for Nunavut

Cloud Computing and Datacentres

Software-Defined Networks and Network Virtualization

Network Function Virtualization

Figure: Next-Generation Network Technology Building Blocks

Facebook's Next-Gen TIP Carrier Initiative

SDN Tied to Big Data and Analytics and Artificial Intelligence

Wireless Broadband at Gigabit Speed

4G LTE at Metro Ethernet Speed

Figure: Wireless Network Speed Evolution to 5G

5G, SDN, and the 3rd Platform

Figure: 5G Infrastructure Built on SDN and NFV
Figure: Comparison of Economic Benefit of New Service Deployment in Three Network Scenarios

Millimeter Wave Technology Key to 5G

Figure: Wireless 5G Millimeter Wave Frequency Spectrum

5G Spectrum Allocation Looms Large

Figure: Trade-Offs of 5G Wireless Frequency Bands
Figure: Canadian 5G Wireless Priority 1 Spectrum Release Timing, 2018–2022

Improved Latency Key Benefit of Millimeter Wave Frequencies

Figure: Wireless Latency Based on Location of Network Element

Radio Head Cell Tower Technology

Figure: Canadian Cell Sites by Carrier, October 2017–March 2020
Table: Canadian Cell Sites by Carrier, March 2020
Table: Canadian Wireless Providers' 3.5G HSPA/4G LTE Vendors

Gigabit Wi-Fi (WiGig) and Wi-Fi 6

Federal Government Supports LEO Satellites

Figure: Proposed LEO Satellite Constellations with Coverage of Canada

Capex 2020 Forecast and Assumptions

Impact of COVID-19 Pandemic

Figure: COVID-19 Impact Scenarios on Canada

Figure: COVID-19 Lockdown Day 1 Workday Impact on Network Traffic, Compared with Week Earlier

Figure: COVID-19 Lockdown Weekend 1 Impact on Network Traffic, Compared with Prior Week

Capex by Segment and Vendor Profiles

Figure: Canadian Telecom Service Provider Revenue and Capex, 2007–2020

Figure: Canadian Telecom Services Capex Annual Change, 2006–2020

Table: Canadian Telecom Capital Expenditure by Company, 2009–2020 (C$M)

Figure: Canadian Telecom Capex by Segment, 2007–2020

Figure: Canadian Wireline Versus Wireless Capex, 2007–2020

Figure: Canadian Top 5 Telecom Capital Spenders, 2006–2020

Incumbent Local Exchange Carriers

Figure: Canadian ILEC Wireline Capex, 2006–2020

Figure: Canadian ILEC and Total Capex Annual Budget Changes, 2006–2020

Figure: Canadian ILEC Wireline and Wireless Capital Intensity Ratio, 2007–2020

Table: Canadian ILEC Wireline Capex, 2009–2020 (C$M)

Bell Canada

Figure: Bell Canada ILEC Wireline Capex and Capital Intensity Ratio, 2006–2020
Figure: Bell Canada Fibre Optic Footprint, Locations Passed, 2016–2019 (M)
Figure: Bell Canada Business Markets Integrated Network Portfolio and Virtual Network Service Platform

Telus

Table: Telus Capital Expenditure by Province, 2018–2019 (C$M)

SaskTel

Interexchange and Competitive Local Exchange Carriers

Figure: Canadian IXC/CLEC Capital Expenditure, 2006–2020

Table: Canadian IXC and CLEC Capex, 2009–2020 (C$M)

Figure: Canadian IXC/CLEC Segment and Total Capex Annual Budget Change, 2006–2020

Zayo Canada (Formerly Allstream)

Figure: Zayo Canada (Allstream) Revenue and Capex, 2002–2020

Aptum Technologies (Formerly Cogeco Peer 1)

AT&T Global Services

Rogers Enterprise Business Unit

Shaw

Eastlink

Primus

Wireless

Figure: Canadian Wireless Capex, 2006–2020

Figure: Canadian Wireless Revenue Versus Capex, 2006–2020

Figure: Canadian Wireless and Telecom Capex Annual Budget Change, 2006–2020

Table: Canadian Wireless Service Provider Capex, 2009–2020 (C$M)

Rogers Wireless

Figure: Rogers Wireless Initial 5G Rollout, 2020

Bell Mobility

Figure: Bell Mobility 3G and 4G Network Peak Speeds, 2006–2019

Telus Mobility

SaskTel Wireless

Vidéotron Wireless

Eastlink

Shaw Freedom Mobile

Mobilicity

SSi Mobile

TeraGo Networks

Cable Companies

Table: Canadian Cable Company Capex Budgets, 2009–2020 (C$M)

Figure: Canadian Cable Company Capex Spending, 2006–2020

Rogers Cable

Figure: Top 5 Canadian Telecom Capex Spenders, 2005–2020

Shaw Cable

Vidéotron Cable

Cogeco Connexion

Eastlink Cable

Canadian Communications Capex

Figure: Canadian Communications Service Provider Revenue Versus Capex, 2009–2020

Figure: Canadian Communications Services Capital Expenditure, 2006–2020

Table: Canadian Telecom Capex Spending (Including Cable) by Company, 2009–2020 (C$M)

Figure: Canadian Communications Capex by Segment, 2006–2020

Final Frontier: The Back Office

Figure: Capex Spending Infrastructure Versus Back Office, 2020

Figure: Evolution of Communications Service Provider OSS-BSS Operations and Monetization

Figure: Communications SP Transformation with Network Automation with SDN and NFV

Advice for the Technology Buyer

Learn More

Related Research

Definitions

Glossary

Telecom Taxonomy and Service Definitions

Figure: Canadian Telecom Market Taxonomy and Key Players, 2020

Local TDM and Wireline

VoIP, Cable Telephony, and SIP Trunk

SIP Trunk

Long Distance

Wireless

Wireless Data Segmentation

Wireless Wholesale

Internet

Data

Video Services

Figure: Over-the-Top Paid Video Services Market Landscape

Methodology

SIP Terms

Difficulty Reconciling Forecasts with CRTC Market Data

Synopsis

Content


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